GROSS PREMIUM TAX/PHPS.

View NCGA Bill Details2019-2020 Session
House Bill 114 (Public) Filed Tuesday, February 19, 2019
AN ACT TO SUBJECT PREPAID HEALTH PLANS LICENSED BY THE DEPARTMENT OF INSURANCE TO THE GROSS PREMIUM TAX.
Intro. by Lambeth, Dobson, Howard.

Status: Sequential Referral To Rules and Operations of the Senate Stricken (Senate action) (Oct 17 2019)

SOG comments (1):

Identical bill

Identical to S 144, filed 2/26/19.

Bill History:

H 114

Bill Summaries:

  • Summary date: Feb 27 2019 - More information

    House committee substitute to the 1st edition makes the following changes. Makes technical changes to GS 105-228.3.

    Amends GS 105-228.59(d) to provide that the tax rate applied to gross premiums from capitation payments received by prepaid health plans (was, applied to gross premiums) is 1.9%.

    Amends GS 58-6-25 (concerning the insurance regulatory charge) by amending the definition of insurance company as it is used in the statute to include prepaid health plans that pay the gross premiums tax.


  • Summary date: Feb 19 2019 - More information

    Makes the following changes to Article 8B of GS Chapter 105, retitling the article Taxes Upon Insurance Companies and Prepaid Health Plans.

    Adds capitation payment and prepaid health plan to the defined terms set out in GS 105-228.3. Makes organizational changes.

    Amends GS 105-228.5, expanding the gross premium tax to subject prepaid health plans to a 1.9% gross premium tax, measured by gross capitation payments received by the prepaid health plan (PHP) by the Department of Health and Human Services for services provided to enrollees in the State Medicaid program or NC Health Choice program in the preceding calendar year. Makes conforming additions concerning calculating the tax base of PHPs. Provides that capitation payments refunded by a PHP to the State are the only allowable deductions. Adds clarification to the exclusion of Medicaid premiums, providing that the exclusion includes Medicaid premiums other than capitation payments, paid by or on behalf of a Medicaid beneficiary. Requires the net proceeds of the tax to be credited to the General Fund. Makes further technical and clarifying changes. 

    Exempts the act from the provisions of GS 143C-5-2 concerning the order of appropriations bills. 

    Effective October 1, 2019. 


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